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Fill er up, Ayatollah

Discussion in 'Sports and News' started by The Big Ragu, Jun 26, 2007.

  1. The Big Ragu

    The Big Ragu Moderator Staff Member

    http://news.bbc.co.uk/2/hi/middle_east/6243644.stm

    This is just fascinating...

    Everytime gas prices go up and people come on here screeching about gouging, I post about refining capacity and supply and demand and it's like talking to a wall, because the same thread that ignores the facts inevitably gets started a few months later.

    Well, either Exxon-Mobile is gouging the hell out of the people who actually produce the oil, or it's really about refining capacity and supply and demand.

    It's just amazing that the people who produce all of the oil don't have enough gas and there are riots. I find it fascinating.
     
  2. Bubbler

    Bubbler Active Member

    [​IMG]

    "Guns, fireworks, tanks, [President] Ahmadinejad should be killed," chanted angry youths, throwing stones at police.

    Who knew Rudy from Bachelor Party moved on to Iran? [/lameBachelorPartyline]
     
    Last edited by a moderator: Dec 15, 2014
  3. Simon_Cowbell

    Simon_Cowbell Active Member

    The U.S. companies' pure profit is higher than it ever has been. End of story.
     
  4. alleyallen

    alleyallen Guest

    Rags, if you want to argue the premise of WHY the prices have gone up, even in the face of record oil company profits, that's fine. Hell, I'll even concede to your argument in that regard.

    Doesn't change the fact that it's like bleeding my bank account every time I have to fill up my car. In the end, my bank account doesn't care if it's supply and demand, production, or gouging. It's smarting from beginning to end.

    Fascinating, indeed.
     
  5. I'll echo Alley.

    Ragu --- and you know I'm lockstep with you on that other thing --- but on this I'm not sure you quite understand the other side. You live in a big city, right? How much driving do you do? (Serious, not rhetorical questions.)

    Those of us not fortunate to live around public transportation, and who have to drive extensive distances for work (i.e. road games) have been getting killed for awhile by the prices. But people in metro areas appear unsympathetic, and that's unfortunate. As Alley once said, we're drowning and you're describing the water.

    If we go ahead and grant that it's refining capacity, supply and demand, the free market, etc., do you at least agree that something must be done? Those of us not in metro areas don't have the option of subways, busses and carpooling, most of us can't afford a hybrid car yet, and to my knowledge there's no electric car on the market yet.

    Any solutions?
     
  6. ThomsonONE

    ThomsonONE Member

    Supply and demand is a two sided equation. Price squeezes can happen because of a disconnect that starts on either side. All the talk about supply being restricted here in the US due to a lack of refinging capacity is pure nonsense. There is no gasoline supply shortage in the US. NONE! If there was a shortage, there would be odd/even rationing, "NO GAS" signs etc. Every gas station in the country has all the gas it's tanks can hold. Every consumer that wants to buy gas can get all that he wants, neither of those conditions can exist if there is a real supply shortage.

    The US has all of gas it needs, when was the last time anyone here went to buy gas and couldn't get it? The oil companies are gouging, plain and simple.
     
  7. Guy_Incognito

    Guy_Incognito Well-Known Member

    The joke is that the politicians who are screaming about this could easily make things easier by temporarily suspending the state taxes on gas, which is a huge chunk of the price we pay.
     
  8. alleyallen

    alleyallen Guest

    I guess what I'm trying to say, Guy, is when it comes to my financial bottom line, it makes little difference the REASON why.

    Like Heinlein wrote in Starship Troopers, it doesn't matter if you buy the farm in a police action or a war. You're still dead.
     
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    Ralph, I do some driving, but I don't live in the car the way many people on here do. So I don't get hit as hard by gas prices as most people, even though I am not entirely immune. Believe me, where I live, I get raped on some things that other people take for granted, though.

    Alley, The impact of high prices on people and the reason for high prices are two different discussions. If the natural resource was plentiful and refining capacity could keep up with demand, gas would be cheap. It really does boil down to a limited resource, worldwide demand that has shot up like crazy in the last decade, and an inability to turn the natural resource into the highly-demanded fuel. There is competition in the oil exploration and refining businesses. No single company can dictate gas prices unless the oil companies are colluding, and there is plenty of evidence they not colluding--including the supreme court decision last year that unanimously found they are not. The facts just don't spell out "gouging." The average oil company earns 10 cents on a gallon of gasoline. If you live in New York, as I do, when you add up the Federal and state taxes, you pay 68 cents a gallon in tax. I completely understand your frustration. It sucks. But if you really believe gouging--and not supply and demand--are what are hitting your wallet, is that 10 cents a gallon the culprit? Are you outraged by the government "gouging" you far worse than the private company that is in business to provide a service and maximize profit (no one complains when any other businesses behave that way)?
     
  10. alleyallen

    alleyallen Guest

    Wow...Rags, I'm sorry, but what part of my above post included rationalizing? I said my bottom line doesn't focus on the why. It simply focuses on the impact. Since there's little I can do about both, it feels like being a victim.

    I don't need an economics lesson. I need relief. Plain and simple. Let the brains figure out how to do it best.
     
  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    Alley, Huh? Not sure what you mean by rationalizing. Not sure what you are apologizing to me for either... You completely lost me.
     
  12. wickedwritah

    wickedwritah Guest

    Interesting. The article says Iran subsidizes 80 percent of the cost of petrol, and that it costs about 11 cents per liter there.

    That means that the real cost for petrol in the country is about 55 cents per liter, or $2.10 per gallon.

    Still a bunch cheaper than here, where we actually have refineries and whatnot.
     
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